Overview of MIT's Production in the
Innovation Economy (PIE) Initiative
October 27, 2011
6th Annual LMP Manufacturing Summit
Prof. Olivier de Weck
deweck@mit.edu
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Presentation Outline
• Personal Observations on Manufacturing
• MIT Production in the Innovation Economy
(PIE) Study – Overview
– 1: Scan of Advanced Manufacturing Technologies
– 2: Early Production Decisions in Startup Firms
• Discussion
2
Personal Observations on Manufacturing
1. Superplastic Forming
versus High-Speed
Machining
Understanding Cost Drivers
1. Swiss F/A-18 Program
Experience
Globalization and Supply Chains
2. Flexibility in Component
Manufacturing
Product Families and Platforms
Variety and Intermediate Volumes
Hauser D., de Weck O.L., “Flexibility in component manufacturing systems: evaluation framework
and case study”, Journal of Intelligent Manufacturing, 18 (3), 421-432, June 2007
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Top 15 Countries in Manufacturing
In 2010 China and US traded places
Production in the Innovation Economy
What future for manufacturing in the U.S.?
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Productivity drives it down the road that agriculture has already taken
Labor costs (and other costs) drive it to Asia
The example of other advanced industrial countries (Germany, Japan ...)
Do new industries (e.g. clean-tech, smart medical devices) require closer
integration of R&D, production and operations?
• Will the finance model for IT (VCs) work for these new industries?
• Do we have the skills and productive capabilities needed for these new
industries in the U.S.?
• Why should we care?
Production in the Innovation Economy
PIE Overview
• MIT’s President Susan Hockfield initiates the project in late 2010
• Model: Made in America Study (1986-1989)
– The MIT Commission on Industrial Productivity
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•
•
•
PIE is asking: How can the U.S. create more value from innovation?
Three Phase Study; Interim Report, Spring 2012
$3M budget mainly foundations (CCNY, Kauffman) and gifts
Co-Chairs: Suzanne Berger, Phillip Sharp; Olivier de Weck, Exec.
Director; 18 leading MIT faculty and the head of the MIT Corp.
• Cross Disciplinary: engineering, science, economics, political
science, management, biology
Production in the Innovation Economy
PIE Study Architecture
7
Regional clusters
Regional clusters
1
Production
Innovation Innovation
Entrepreneurship
Entrepreneurship
2
manufacturingrelated services
Government Policy
4
job growth
job growth
Services 3
Economy
Economy
Income distribution
labor relations
5 6
non-manufacturing
services
X
Income distribution
labor relations
Study Module
20 labs interviewed
Module 1: Internal Scan at MIT (Summer 2011)
Mix of Product and Process Innovations
Nano-engineered Surfaces
(K. Varanasi, MechE)
Electro spray
Thrusters (Lozano, AA)
MEMS Compliant
Actuators
(Culpepper, LMP)
Rodney Brooks
CSAIL – Humanoid Robotics
Nano-spinning of polymers
(G. Rutledge, ChemE)
Nano-materials
Bio-manufacturing
Pharmaceuticals
Batteries
Robotics
Solar/Sustainable
Supply Chains
Robotics for Composite
Layup (J. Shah, AA)
Layer-by-Layer
Continuous Manufacturing of
Assy of Bio-materials
Pharmaceuticals (B. Trout, ChemE) (R. Cohen, ChemE)
RFID-technology Auto-ID
Nanophosphate Li-Ion Batteries
( YM Chiang, DMSE)
Continuous Flow Batteries (YMC)
Sarma (MechE), Williams(CEE,ESD)
Liquid Metal Batteries
(Don Sadoway, DMSE)
Organic Photovoltaic's
(Bulovic/Gleason) EECS,
Silicon-Ribbon PV cells
Alumnimum Recycling under comp. uncertainty
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J. Clark, R. Kirchain (MSL)
Initial Trends from MIT and U.S. University Scan
Jonté Craighead (UROP) conducted a web-survey of other U.S. Universities
1.
2.
3.
4.
5.
6.
7.
Development of new materials and surfaces at the micro- and nano-scale
Reducing CAPEX requirements for manufacturing of high quality objects in small
batch sizes with high levels of “niche” customization
Improving efficiency of existing manufacturing with less energy use and waste
Increased use of smart automation during manufacturing, but also advanced
robots as a product
Enabling technologies that might create new manufacturing ecosystems (ion
thrusters, grid storage, thin film solar cells)
New differentiators for success besides cost are customization, design, and
service
Role of the internet in creating an open eco-system for design, example:
(http://www.mfg.com)
Too much happening at MIT to be complete – will conduct a campus wide survey (similar to
MITEI) to elicit from the bottom-up who is doing what related to adv. manufacturing
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What is Advanced Manufacturing?
Traditional
Manufacturing
(20th century)
raw materials
from nature
Fabrication
parts
Assembly
finished
products
services
software
Bundling
Integrated
solutions
parts
continuous
Assembly
finished
products
raw materials
from nature
Material
Design
Advanced
Manufacturing
(21th century)
synthetic
materials
Fabrication
recovered
materials
Recycling
Advanced Manufacturing is the creation of integrated solutions that require the
production of physical artifacts coupled with valued-added services and software,
potentially exploiting custom-designed and recycled materials.
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Module 2:
Innovation Pathways to Production – Research Questions
• What are the strategic decisions made by entrepreneurial firms
at as they move from invention/innovation to early production
stages?
• For the initial set of production capabilities are these developed
in-house, via a contracting or licensing relationship, or with a
large strategic partner, e.g. in the form of a joint venture?
• What are the key factors shaping these decisions?
• How stable are early production decisions typically? Do they
freeze downstream production configurations or are they often
overturned as new opportunities arise?
• Data set of 228 MIT Startups between 1997-2010 (TLO)
Production in the Innovation Economy
Pathways to Production
• Initial guess at a decision tree/taxonomy
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Summary and Discussion
• U.S. Manufacturing is critical to our future
• Renewed interest in manufacturing at the national scale
(PCAST, AMP) and at MIT
• MIT has launched the PIE Study as a major initiative
– Empirical study to establish better understanding of link between
upstream innovation, manufacturing and global markets
– How do we impact “manufacturing” education in a positive way?
• Expect initial recommendations in early 2012
http://web.mit.edu/pie
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Backup Charts
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Comparison of Advanced Manufacturing Technologies /
Promising areas mentioned in recent mfg reports
PCAST (6/2011)
IfM Cambridge
UK (3/2011)
DARPA Mfg
Prgms (9/2011)
NSF (+$ ACA,
12/2010)
U Mich /NSF WS
(5/2010)
Nano-Scale*
Carbon Materials
Sustainable
Manufacturing
Advanced Mfg
Pharmaceuticals
Advanced
Materials Design
Re-Manufacturing
(Recycling)
Flexible*
Electronics
Bio- and Nanoenabled mfg
Mask-less NanoLithography
Nanomanufacturing
Scale-up and
continuous mfg
Next generation
Optoelectronics*
Modeling and
Simulation
META- Design
5 x speedup
Next-generation
Robotics
Modeling &
Simulation & LCC
Nano-enabled
Medical Devices*
Rapid and
responsive Mfg
Foundries for
Cyber-phys Sys.
Smart Building
Technologies
Adv. Robotics /
Smart Automation
Mfg and Aging
(Japan)
“Full-Scale Rapid”
Prototyping
Mfg for Anti-Piracy
(Germany)
*PCAST mentions that these technologies are subject to potential “market failure”
Conclusion: There is a lot of similarity amongst reports in terms of what research
areas are considered to be important in advanced manufacturing, but what should
be included in advanced manufacturing scope?
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Typical profile of successful growth firm
Later scale-up
Revenue ($M)
# employees [FTE]
Initial scale-up
1,000
maturation
100
plateau
1
5
10
15
Year
negative cash-flow
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